THE IMPORTANCE OF EMERGENCY FUNDS FOR CRYPTO INVESTORS
Emergency funds is just exactly what the name implies funds set aside for emergencies. Emergencies could be in the form or previously thought financial expenses or in other cases unexpected ones. The funds is there as a form of safety backup in case it is needed urgently and it is easily agreeable that we all have different forms of emergencies from time to time.
There are the usual emergencies that occur in our lives like an unexpected medical bill for an accident, a late salary payment or getting tired from work. In all these cases, having a certain amount of money set aside for these unexpected occurrence helps to alleviate the effects and also give you room to properly solve your problem without much of the worries that would've accompanied it.
Just how important is an emergency fund for crypto investors? You'd be surprised at just how many people base their daily survival on crypto earnings. Earning in cryptocurrencies covers a wide range of options and as popularity grows, more people are seeing the advantages involved.
But just as there are many opportunities to earn, trading cryptocurrencies can also be very risky. It's very easy to loose your investment or make bad ones.
Emergency funds can come in quite handy for an unexpected dip like that of Bitcoin recently. For many who depend on crypto, they were suddenly running at losses and while some are waiting for the next bullish some others also made dumps. This is where such funds are advantageous because they can be used while removing some of the worries that the emergency brought and you can easily make some investments choices which ordinarily you might not be willing to choose.
Given how risky trading cryptocurrencies can be, I believe every investor should be looking at setting aside a crypto emergency funds for when the market isn't making them smile. This could be based on yearly plans or other shorter time frames depending on your capacity.
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